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Activity - Based Budgeting St . Sophia's Hospital is preparing its budget for the coming year. It uses an activity - based approach for all

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Activity-Based Budgeting
St. Sophia's Hospital is preparing its budget for the coming year. It uses an activity-based approach for all costs except physician care. Its emergency room has three activity areas with cost drivers as follows:
Reception-paperwork of incoming patients. Cost driver is the number of forms completed.
Treatment-initial diagnosis and treatment of patients. Cost driver is the number of diagnoses treated.
Cleaning-general cleaning plus preparing treatment facilities for next patient. Cost driver is the number of people visiting emergency room (patients plus person(s) accompanying them).
a. Prepare the total budgeted cost for each activity.
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